November 2018

Architecture Engineering & Environmental Services

Sectorwatch

October was extremely active for AEC M&A, with more than 25 transactions announced during the month. Among the dealmaking were several strategic divestitures including Stantec’s water construction business, which was sold to Oaktree Capital Management and Jacobs’ energy, chemicals, and resources business, which was sold to WorleyParsons.

Industry Trends:

Current revenue growth rate exceeds the average of the last 3 years, indicating that market momentum is increasing

Current gross profit margin exceeds the average of the last 3 years gross profit margin by this amount, indicating supplier pricing power

Current EBITDA margin exceeds the average of the last 3 years EBITDA margin, a condition that may attract new entrants